Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. Financial and market information provided on U.Today is for informational purposes only. U.Today is not responsible for any financial losses incurred while trading cryptocurrencies. Please contact a financial professional and conduct your own research before making any investment decisions. Although we believe all content is accurate as of the date of publication, certain offers mentioned may not be currently available.
The recent surge in Bitcoin prices has led to an increase in pre-market trading in crypto-related stocks, with Bitcoin reaching a five-month high of more than $71,000. MicroStrategy, Bitcoin's largest institutional holder, directly benefited from Bitcoin's surge, with its stock up 30% before the market opened.
CEO Michael Saylor's aggressive Bitcoin accumulation strategy appears to be paying off, as MicroStrategy's stock performance closely tracks Bitcoin price fluctuations. Coinbase Global, one of the other crypto-related stocks, also rose 2.6% as investors' interest in Bitcoin grew as the price soared.
Leading Bitcoin mining company Bitfarms rose 61% pre-market, while Hut8 and Riot Platforms also rose 34%. Marathon Digital Holdings (MARA) joined the rally, rising 3 points. Meanwhile, ETFs that track Bitcoin, such as iShares Bitcoin Trust and ProShares Bitcoin Strategy ETF, rose 2.5%, showing growing confidence in the Bitcoin industry.
According to data from the Saylor Bitcoin tracker, MicroStrategy has seen a significant increase in the value of its Bitcoin holdings. With an average cost basis of approximately $39,464, the current price of $71,201 represents a significant unrealized profit, with an estimated total profit of over $8 billion.
related
MicroStrategy's position was further strengthened by its recent acquisition of 87,420 Bitcoins on September 20th at a price of $61,750 per Bitcoin. This acquisition added significant value as the price of Bitcoin has increased significantly since then. The possibility of Bitcoin hitting new highs is fueling investor sentiment, as evidenced by the strong pre-market performance of crypto stocks.
If Bitcoin continues on its current upward trajectory, it could support further upside for all crypto-related assets. However, due to Bitcoin's volatility, these gains are not guaranteed, and continued optimism will likely depend on the cryptocurrency's ability to sustain above the critical $70,000 level. It will be.
The rally confirms Saylor's long-term outlook for digital assets, as MicroStrategy's approach is strongly tied to Bitcoin's performance. If Bitcoin continues to hit new all-time highs, MicroStrategy and its crypto industry peers would be well-positioned to benefit from the momentum.
